Goldman Sachs: China Smartphones — Feb Shipments Down 13% YoY; Rising Memory Costs Cap Demand
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China's smartphone shipments fell 13% year-over-year to 16 million units in February 2026, declining 21% month-over-month and extending January's 9% sequential drop. Goldman Sachs projects first-quarter 2026 shipments to decline 10% year-over-year, weighed down by seasonal softness and rising memory costs that are suppressing end-market demand.
5G smartphone shipments reached 16 million units, down 11% year-over-year and 20% sequentially, with penetration holding at 95%. Fifteen new 5G models launched in February, up 67% year-over-year, while total new smartphone model releases rose 64% to 18 units.
Camera specifications continue trending upscale despite fewer cameras per device. The count peaked at 3.8 in 2022, fell to 3.1 in 2025, and stands at 3.2 year-to-date in 2026. Meanwhile, penetration of cameras above 20 megapixels climbed from 52% in 2024 to 57% in 2025, reaching 67% year-to-date in 2026.
New device launches illustrate this premiumization. Huawei's Mate 80 Pro Max Wind edition features a 13 MPx front camera alongside three rear cameras (50/50/40 MPx) with an active cooling system. OPPO's Find N6 foldable pairs a 20 MPx front camera with a 200 MPx main, 50 MPx ultrawide, and 50 MPx periscope telephoto rear array, starting at $1,428.
Goldman Sachs maintains Buy ratings on Foxconn, AAC Technologies, Lingyi iTech, Largan Precision, Sunny Optical, Fositek, and TSMC.